Findel has decided not to proceed with a demerger of its home shopping and educational supplies division, despite City enthusiasm for the idea.

Chief executive Patrick Jolly said: “The two divisions are working well together and we don’t feel that in the current market a demerger would benefit shareholders.”

He did not entirely discount it as a future option, but Seymour Pierce analyst Richard Ratner said Findel had “missed the boat” by retaining its existing structure.

The retailer reported that home shopping divisional sales rose 59 per cent in the first half compared with the equivalent period last year. Group sales advanced 32 per cent.

Findel also assuaged fears that it could be affected by the credit crunch. The retailer said its debtor book securitisation facility “operated smoothly during recent market conditions” and the provider has no exposure to US sub-prime mortgages. Findel has renewed its revolving credit facilities on improved terms.

The retailer said it now has access to£250 million, rather than£200 million, allowing “headroom for further expansion”.

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